Strategic Frameworks: Conceptual Perspectives on the Influence of Modern Banking on the Development of the Sme Sector

Technology has influenced every aspect of our lives. From the moment we wake up to when we go to bed, we are surrounded by technological advancements. The banking sector is no exception. Internet banking has greatly simplified daily life for people worldwide. This is particularly true in India, where visiting a bank often means standing in long queues. Internet banking has been a significant convenience, streamlining almost every customer task and allowing transactions to be completed in seconds with just a few clicks. New-age banking, also referred to as online banking, e-banking, or internet banking, is a service provided by financial institutions that enables customers to perform banking activities online.The primary aim of this research is to identify the key factors that favor the use of digital banking and the rate of acceptance of digital finance in the SME sector. The study also examines the impact of digital banking usage and acceptance on the growth and cost-effectiveness of SMEs. It confirms that while SMEs play a crucial role in the economy, they often face limited access to finance. This research develops a conceptual framework for the adoption of e-banking by SMEs by integrating all relevant factors and demonstrates that SMEs find it more convenient to accept and make payments through new-age banking.